Pakistan: Textile Industry Full Load Production Cotton Yarn Prices Continue To Rise

At present, Pakistan's domestic textile industry is fully recovered. Under the influence of cotton price recovery, yarn prices have continued to rise in recent two weeks.

With the increasing demand of downstream enterprises, cotton yarn prices in Pakistan continued to rise in the recent week. At present, textile mills and garment factories are close to full capacity production. In July, textile and garment exports increased by 14.4% year-on-year, and textile exports rebounded sharply.

Affected by this, the domestic and export prices of Pakistan's yarn have increased by more than 2% in the past two weeks. Although the overall price is still far below the level in the same period last year, there is still a potential for growth in the future.

Meanwhile, the price of cotton in Pakistan continued to rise, and the price of imported American cotton rose to 72 cents / pound.

At present, India's domestic inventory of cotton is selling at a low price, cotton mill profits began to improve. India's cotton production is expected to increase significantly in 2020 / 21.

This week, Indian market activity during the holiday period was limited, cotton yarn prices were basically stable. Affected by the decrease of cotton market in the last year and the fact that new cotton is far from harvested, the domestic cotton price has maintained a strong momentum.

Recently, India's state-owned inventory was sold to domestic mills and international cotton merchants at a low price, and CCI's total sales volume was no less than 4 million bales. India's cotton production is expected to increase in 2020 / 21. USDA expects India's cotton production to increase by 4.2% year-on-year and 15% in two years. The cotton society of India has just increased its output in 2019 / 20. Therefore, even if India's cotton exports increase, India's cotton final inventory will continue to increase.